Cleveland Synergy Foundation, the group granted the right to host the 2014 Gay Games until the Federation of Gay Games stripped them of that right in July, filed a lawsuit today against the Federation of Gay Games. The City of Cleveland and two other defendants are also named in the suit. The FGG is being sued for alleged breach of the license agreement between the FGG and Cleveland Synergy, interference with contractual and business relations, civil conspiracy, false light and defamation. Cleveland Synergy is demanding a jury trial. You can read the formal complaint here.
Cleveland Synergy has also released a statement through their attorney, which you can read after the jump. We have reached out to the FGG for comment and will bring you that as we receive it.
"The Cleveland Synergy Foundation was formed for the purpose of engaging in charitable activities to enhance the economy, image and quality of life in the greater Cleveland gay, lesbian, bisexual, transgender and straight community by attracting and creating athletic, cultural, and other events and festivals. The Founders of Synergy, the Directors and the volunteers which comprise Synergy have worked tirelessly to bring the 2014 Gay Games to the City of Cleveland. To this end the Federation of Gay Games executed a License Agreement with Cleveland Synergy Group which granted Synergy "the exclusive right to host, organize, promote and present the Games." On July 6, 2010 the Federation of Gay Games served notice to Synergy of their intent to terminate the License Agreement. The purported termination was simply the most recent example of the Federation of Gay Games failure to honor their obligation under the terms of the License Agreement.
"Since the purported termination of the License Agreement, Synergy has steadfastly refused to comment publicly regarding the breaches of the agreement which have occurred, or the conduct of various parties who had been intimately involved with their effort to bring the Gay Games to Cleveland. Since that time, Synergy has been victimized by assertions that they were in material default of the License Agreement. It has even been suggested that Synergy has engaged in financial impropriety. These assertions and implications are patently false.
"Synergy remains committed to bringing the Gay Games to Cleveland, Ohio and as the Federation of Gay Games had previously recognized they are uniquely qualified to host this monumental event. Unfortunately, it has become necessary to vindicate Synergy's contractual right to host these games, but more importantly to protect the reputation of Synergy and its' [sic] members to preserve their ongoing mission."
Richard C. Haber
Andrew A. Kabat
Haber Polk Kabat, LLP